Danny McCance 11 May 2018 11:07am

SIG shareholders revolt against Deloitte reappointment

A resolution to reappoint Deloitte as external auditor at the construction supplies distributor was voted down

It was rejected by an overwhelming 78% of shareholders, while a large proportion (46%) also voted against approving the financial statements at the firms AGM.

This came just three months after it was revealed that SIG had been exaggerating profits for years.

In February, SIG announced that it had suspended a number of individuals after revealing that its profits had been overstated by £6.6m over a number of years, according to The Times.

The company reported at the time that in some instances profits had been exaggerated intentionally, with profits overstated by £3.7m across 2016.

The fees Deloitte received in the same year reportedly amounted to £1.6m.

SIG claimed in a statement that the board said it was taking the opportunity “to inform shareholders that it is committed to carrying out an EU Audit Regulation compliant audit tender for the role of auditor, as soon as is practicable.”

Furthermore, the firm said it will consult with shareholders in the following weeks on the timing of this tender process and the appointment of a new auditor.

“Deloitte acknowledges the outcome of today’s shareholder vote at the AGM of SIG plc. While we are disappointed in the outcome, we recognise the right of shareholders to exercise their view,” a spokesperson for the firm said.

“As a result of the vote we ceased to hold office as auditor to SIG plc at the end of the AGM,” they added.

Deloitte will conclude its work for SIG in closing out and signing off group subsidiary accounts for the year ended 31 December 2017.